It was the highest number ever in a single month, surpassing the previous record set in November. On December 23 alone there were 102,222 background checks, making it the second busiest single day for buying guns in history. The actual number of guns bought may have been even higher if individual customers took home more than one each. Explanations for America's surge in gun buying include that it is a response to the stalled economy with people fearing crime waves. Another theory is that buyers are rushing to gun shops because they believe tighter firearms laws will be introduced in the future.

The National Rifle Association said people were concerned about self defence because police officer numbers were declining. A spokesman said: "I think there's an increased realisation that when something bad occurs it's going to be between them and the criminal." But anti-gun campaigners said those who already owned weapons were simply hoarding more of them due to "fear-mongering" by the NRA. A spokeswoman for the Brady Campaign to Prevent Gun Violence said: "The research we've seen indicates fewer and fewer people are owning more and more guns."

Dave LaRue, of Legendary Guns in Phoenix, Arizona, said Christmas sales were up 25 per cent on the previous year and ammunition sales were also "brisk". He said: "There are a lot of people concerned about pending gun legislation and the sense about the current administration. People think future availability will be limited and there's a feeling of get it while you can."

2011 was a dire year for equities outside the United States with world stocks poised to drop by around eight percent and emerging markets faring far worse. Crude oil has been among the best performers with a roughly 10 percent increase and gold has matched it as a loss of confidence in the euro zone accelerated a flight to bullion.

So where next? The answer to that question depends on whether you believe policymakers in Europe, Asia and America will muddle through or whether a new cataclysm is imminent.

But given all the uncertainties - who could have predicted the Arab Spring this time last year or the devastation wreaked on Japan - picking the right moment to dive in will be hair-raising. "A very nasty outcome, with a collapse of the euro zone triggering a steep global recession, perhaps exacerbated by structural problems in China, is not impossible," HSBC global equity strategists said in a note.

The S&P 500, a measure of the biggest US companies' market value, spent much of the year getting pushed up and down, flummoxing shorts and longs - and scaring Moms and Pops away from stocks. It ended the year at 1,257.60, down a mere 0.04 of a point. But the S&P 500's tepid performance was encouraging, compared with other world equity markets. The United States may still be seen as a safe haven, though even that looks uncertain.

For every rally built on improving economic figures this year, selloffs were never far away on worries the European debt crisis would eventually drag the continent into a recession and perhaps the United States as well. That could continue in 2012. China and other fast-growing emerging markets can no longer be leaned on as those economies slow. In 2011's last half, the poorest-performing sectors outside of banks were most connected to global growth - materials, energy and industrial companies.

"There is a growing realization that the global economy is in jeopardy," said Bruce Bittles, chief investment strategist at Robert W Baird & Co in Nashville. "There is uncertainty in every corner of the world."

At least four new fires were reported on New Year's Eve, including one caught on tape at the Hollywood & Highland shopping center on Hollywood Boulevard. Firefighters responded after 7 pm to a report that a car inside the Hollywood & Highland parking deck was on fire, said Los Angeles Fire Department Captain Brian Humphrey. By the time they arrived, the fire was out, but a suspect's image may have been captured by one of the structure's video cameras. Police were broadcasting a description of a white man in his mid-30s with a receding hairline and a ponytail.

In West Hollywood, Los Angeles County firefighters were called to 1035 North Sweetzer Avenue around 8:30 pm. They found an apartment house carport with two vehicles ablaze and spent 25 minutes dousing the flames, said Don Kunitomi, an on-scene fire inspector. "Whoever is doing this is really messing with people's lives," said Fire Captain Jamie Moore.

Most of the blazes were started on automobiles, with some spreading to buildings. By Saturday night, the Los Angeles police and fire departments were leading a multi-agency campaign across the county. "We're pulling out all the stops," Humphrey said. "We're hoping that the person or people responsible will be brought to swift and complete justice."

Meanwhile, celebrity chef Ainsley Harriott has helped devise a cookbook promoting healthy dishes, with recipes that can be created for under 5 pounds. He has also been filmed performing cooking tutorials which will be posted on the Change 4 Life website. Among the meals being promoted are vegetable soup, fish pie and sweet and sour chicken. Many of the ingredients will be discounted at the three supermarket chains signed up to the campaign - Asda, Co-op and Aldi - although it is not being revealed how big the discounts will be.

Public health minister Anne Milton said: "The new year is a good time to think about losing weight. The Supermeals campaign will gives us all some great ideas for balanced meals on a budget." Mr Harriott added: "Sometimes the thought of making meals from scratch can seem a bit daunting, but I have always tried to assure people that cooking at home can be really quick, easy and doesn't need to break the bank."

But Labour criticised the move. Shadow public health minister Diane Abbott said: "They're calling this public health but it's just a glorified advertisement for big business. This is a government that doesn't take its responsibility around public health seriously. Some areas in inner cities are fresh food deserts so families fall into eating takeaway chicken and chips."

There has been no let-up in the violence since the observers started their work on Tuesday. Their mission is to monitor a peace plan drawn up by the Arab League. The Speaker of the Arab Parliament, Salem al-Diqbassi, said in a statement that the continuing repression "in the presence of Arab monitors has roused the anger of Arab people and negates the purpose of sending a fact-finding mission". This is giving the Syrian regime an Arab cover for continuing its inhumane actions under the eyes and ears of the Arab League," Mr Diqbassi added.

Yolande Knell, BBC Middle East online reporter writes: "While the Arab Parliament has little direct influence over the League that set it up, these remarks about the much-vaunted observer mission in Syria clearly spell out concerns about its success. The observers are supposed to assess whether the Syrian government complies with a regional peace plan aimed at ending nine months of violence. However, since they entered the country - in lower numbers than originally anticipated - the death toll has continued to rise."

"There have also been other sources of controversy. There are doubts about the allegiances of the chief observer, General Mustafa al-Dabi, a Sudanese intelligence officer who has been connected to war crimes in Darfur. His remarks have apparently contradicted an observer shown in YouTube footage saying he had witnessed snipers in action against protesters. This all reflects badly on the credibility of the Arab League which is desperate to show that it can respond effectively to the continuing uprisings in the region and avert any possible outside intervention."

The pact was signed by then-Egyptian president Anwar Sadat and Israeli Prime Minister Menachem Begin, but a "cold peace" has set in over the past several years. "People will express their opinions on it. All parties can reconsider the treaty and Egyptians haven't yet had their say," he explained. "We won't violate the treaty. We can put it for referendum among people or parliament," Bayoumi said.

The ploy would ostensibly take the onus off the radical Muslim party, which Jeffrey Feltman, US Assistant Secretary of State for Near Eastern Affairs, has said will respect the treaty. However, Bayoumi's statements to Al Hayat made it clear that the Brotherhood has no intention of recognizing Israel. "I'll never allow myself to sit down with a criminal. We will not deal with Israelis by any means," he said.

The Muslim Brotherhood won approximately 40 percent in the first rounds of voting for the next Egyptian legislature, giving it a plurality. The next popular party is the even more radical Salafi al-Nour party, which won nearly 30 percent of the vote.

The emerging markets, meanwhile, will keep forging ahead during 2012. Even if China slows a bit, the world's second-largest economy should expand by 8% to 9%. The "big four" emerging markets - China, India, Russia and Brazil - now make up a quarter of the global economy. These "emerging giants" will account for the lion's share of world growth in 2012, just as they did in each of the past three years.

Having added my headline numbers to the predictive fray, I'd like to focus on an issue I believe will weigh heavily on the minds of Western economic policymakers during 2012 - namely, the price of crude oil.

When the Western world has previously hit the economic skids, the resulting fall in global oil demand has caused crude prices to fall too. As such, the West has benefited from a "self-correction" mechanism, our own economic slowdown creating the lower oil prices that, in turn, have assisted our recovery. During previous slowdowns, lower fuel costs have boosted the profitability of Western firms. Reduced inflationary pressures have provided our central banks with the room to cut interest rates.

So cheaper oil has helped the West climb out of periodic economic slumps. Yet this vital mechanism is now broken. Oil prices averaged $111 a barrel during 2011, up from $79 in 2010. Crude prices could stay at similarly elevated levels this year. Sky-high oil, it seems, is now compatible with Western recession. Commodity prices are compounding our economic woes, rather than helping us escape them. What's changed recently is that even if the big Western economies remain sluggish, and our oil use falls slightly, the fast-growing markets of the East retain their insatiable appetite for crude.

France's President Sarkozy said the crisis was not finished, while Italy's president called for more sacrifices. Growth in Europe has stalled as the debt crisis has forced governments to slash spending. The leaders' new year messages came as leading economists polled by the BBC said they expected a return to recession in Europe in the first half of 2012.

The cost of borrowing for some of the eurozone's largest economies, including Italy and Spain, has shot up in recent months as lenders fear governments will not be able to pay back money they have already borrowed. With growth stalled, the pressure is on governments across Europe, not just ones using the single currency, to cut spending in order to meet debt obligations.

Fears are now focusing on a potential second credit crunch, triggered by the exposure of banks across Europe to Italy's huge debt.

Iran delayed testing its long-range missiles during the drill, saying the weapons would be launched in the next few days. The United States and Israel say they have not ruled out military action against Iran if diplomacy fails to resolve a dispute over the country's nuclear program, which Tehran says is peaceful but the West says is a cover to build a bomb. Iran has long-range missile systems including the Shahab-3, which could reach Israel and US bases in the Middle East.

In the past week Iran has threatened to stop ships moving through the strategic Strait of Hormuz if sanctions are imposed on its oil exports. The threat has heightened tension between Iran and the West. The US Fifth Fleet said it will not allow any disruption of traffic in the vital oil shipping route.

Zhang, the bank's research director, recommended buying the dips: "The Chinese government should not only be cautious of the imported risk caused by rising global inflation, but also further optimize its foreign-exchange portfolio and purchase gold assets when the gold price shows a favorable fluctuation." China's $3.2 trillion in foreign reserves are currently invested one-third in US treasuries 20 percent in euro-denominated assets and only 1.8 percent in gold, according to China Daily. China has one of the world's biggest gold reserves at 1,054 tons.

The 10 Biggest Gold-Hoarding Countries In The World

(http://www.businessinsider.com/gold-holdings-by-country-2011-12#1-united-states-10)

#10 India Official gold holdings: 557.7 tonnes Percent of reserves: 9.0%

#9 Netherlands Official gold holdings: 612.5 tonnes Percent of reserves: 61.0%

#8 Japan Official gold holdings: 765.2 tonnes Percent of reserves: 3.3%

#7 Russia Official gold holdings: 851.5 tonnes Percent of reserves: 8.6%

#6 Switzerland Official gold holdings: 1,040.1 tonnes Percent of reserves: 14.3%

#5 China Official gold holdings: 1,054.1 tonnes Percent of reserves: 1.7%

#4 France Official gold holdings: 2,435.4 tonnes Percent of reserves: 71.0%

#3 Italy Official gold holdings: 2,451.8 tonnes Percent of reserves: 72.2%

#2 Germany Official gold holdings: 3,401.0 tonnes Percent of reserves: 72.6%

#1 United States Official gold holdings: 8,133.5 tonnes Percent of reserves: 75.5%

"Obviously we close 2011 with a huge amount of focus on the trials and tribulations of the eurozone," Mr Sands said. "I actually think the big news of last month's summit was that unfortunately once again the eurozone political leadership didn't really produce something that was that compelling or credible as a plan to deal with the problems and to re-engergise growth in the eurozone.

"We enter 2012 with a very difficult outlook for the eurozone [and] with an increasing possibility of countries actually leaving the eurozone. Nobody should underestimate what a big deal that would be, because it would be very difficult to manage the contagion risk, even if it was only Greece. The disruption from that would really be quite significant. That will have ramifications all over the world... because the simple maths is that the eurozone is a very large part of the global economy and if it is going slower, then economic trade will be slower around the world. Also just from a confidence perspective."

After the political failures of 2011, Mr Sands said his position had hardened on the possibility of one nation pulling out.

How much does time cost? That depends what you need it for. The time that Europe's leaders want to buy to tackle the euro crisis is a precious commodity. And its price keeps going up and up. Initially, it was supposed to cost 110 billion euros ($130 billion). That's how expensive the first EU bailout package for Greece was. Soon, it was expanded via a comprehensive rescue fund that helped out Portugal and Ireland. Then came a second bailout package for Greece, followed by an even more comprehensive rescue fund for the rest.

In late September 2011, representatives in Germany's parliament, the Bundestag, had not yet voted on this expanded package - which would put Germany alone on the hook for 211 billion euros - but it was already clear to them that even that wouldn't be enough. But nobody could say that out loud, and especially not Finance Minister Wolfgang Schauble, because they obviously didn't want to endanger the government's majority in parliament - and, thereby, its own ability to govern.

On top of that, the European Central Bank (ECB) is buying up sovereign bonds of debt-ridden euro-zone countries. At first, it was Greece, Portugal and Ireland. Then, beginning in the summer of 2011, it bought bonds from Italy and Spain. It now has a grand total of over 195 billion euros of bonds on its books. If things should go south, Germany will also ultimately be responsible for 27 percent of that figure, corresponding to Germany's share of the ECB's capital.

The argument is always that it's all about winning time. Time that would allow the financial markets to settle down. Time that would let the debt-ridden PIIGS states (Portugal, Ireland, Italy, Greece and Spain) implement stringent cost-cutting measures. Time that would make it possible for the euro zone to reform its institutions and rules - and perhaps even let Greece default without having the entire euro immediately implode.

But is all that money really well invested? And will the time it has bought also be put to sensible use?

As the euro plunged against the yen to its lowest level for 10 years, Mr Schauble was reported as saying he could rule out the eurozone breaking up: "According to everything that I know at the moment, yes." Terry Smith, chief executive of Tullett Prebon, said the Mr Schauble was "talking his own book" in hoping the current agreements will save the euro. "The German finance minister has not said anything substantive which changes the situation," he told The Daily Telegraph. "If the eurozone crisis could be solved by confident pronouncements, it would already be saved. I would be shocked if Greece does not leave the eurozone in 2012 and this does not lead the markets to test the resolve to defend the positions of Portugal, Spain, Italy and, ultimately, France."

Jurgen Michels, an economist at Citigroup, said that Mr Schauble was being "optimistic" as "we expect a severe recession in the euro area and sharp contractions in the periphery countries including Italy and Spain - 2012 will be a very difficult year for the euro area."

Nicolas Spiro, a sovereign risk consultant, said it was more likely that the crisis would escalate because leaders have "failed to meaningfully address the issue that concerns investors the most: the solvency of governments".

The Kurds, whose kingmaking role in Iraqi electoral politics has been eroded by Maliki's assertion of his own authority, will try to use Vice-President Tareq al-Hashemi's plight to gain leverage in their own disputes with Baghdad, analysts say. They, like Maliki and other Iraqi politicians, are playing for high stakes in a potentially destabilizing game following the US withdrawal from a nation whose ethnic and sectarian struggles may be affected by the uprising in Syria next door.

Shi'ite factions which emerged as winners from the US invasion of Iraq fret that a Sunni government may replace Syrian President Bashar al-Assad, an ally of Shi'ite Iran, and embolden Iraqi Sunnis whose heartlands border Syria. "The fact that the Kurds have ended up in the middle of this crisis - and are likely being lobbied by the US to resolve the crisis rather than exacerbate it - means that they are returning to their kingmaker role once again," said Gala Riani, an analyst at IHS Global Insight. "It is likely that the Kurds will lay low, not inflame the situation and try to mediate whilst at the same time strengthen their hands vis-a-vis the federal government to try to resolve some outstanding issues."

The Kurds are disgruntled over Maliki's failure to keep promises to solve long-standing disputes over oil contracts, land and constitutional rights that the Shi'ite leader made when he formed his power-sharing government last year. They also fear Maliki is consolidating power in his own hands and sidelining old Sunni rivals such as Hashemi and his own deputy Saleh al-Mutlaq. Maliki asked parliament to fire Mutlaq for comparing him with deposed leader Saddam Hussein.